Harvey impact on gas prices: I'm in the Northeast US and see an increase of 30 to 40 cents a gallon in the last 3 days. I know that Harvey damaged some of the refineries and expected...

Dannj

I'm in the Northeast US and see an increase of 30 to 40 cents a gallon in the last 3 days. I know that Harvey damaged some of the refineries and expected to see a rise in prices but not so soon.
I don't know how the pricing structure works but I would think that the gas I'm buying now has already been bought and paid for by the dealer I'm buying from and they're jacking up the prices prematurely on the gas that's already in the pipeline.

Anyone know how this works?

rmalarz Loc: Tempe, Arizona

My theory on the pricing of gasoline is gouge the consumer.
--Bob

Dannj wrote:

I'm in the Northeast US and see an increase of 30 to 40 cents a gallon in the last 3 days. I know that Harvey damaged some of the refineries and expected to see a rise in prices but not so soon.
I don't know how the pricing structure works but I would think that the gas I'm buying now has already been bought and paid for by the dealer I'm buying from and they're jacking up the prices prematurely on the gas that's already in the pipeline.

Anyone know how this works?

thewags Loc: Phoenix

In Phoenix, I did notice a 10 cent jump last week. Never thought about Harvey, just assumed it was due to the Labor Day weekend.

Poohpz Loc: Rhode Island

I am hoping the increase goes to help the refineries get back up and running again. If that's the case and my husband keeps saying it is, then I don't mind.

rmalarz Loc: Tempe, Arizona

Harvey was rather well timed. It played into the holiday price hike, but may cover a larger than usual one.
--Bob

thewags wrote:

In Phoenix, I did notice a 10 cent jump last week. Never thought about Harvey, just assumed it was due to the Labor Day weekend.

htbrown Loc: San Francisco Bay Area

That'a how it works. Anything that happens in the supply-chain causes an instant price hike at the pumps. Once the problem is resolved, there's a long tail as the prices slowly decline, and never to what they were before. It's obvious the price jump is not caused by economic necessity, but in the US there are precious few alternatives. They have us over a barrel.

Picture Taker Loc: Michigan Thumb

At every incident with gas the price increase is instant. They will do down when it is fixed but, that decrease will take time as the gas that goes down takes time to getnto your gas station. It's a one way street.

Picture Taker Loc: Michigan Thumb

At every incident with gas the price increase is instant. They will do down when it is fixed but, that decrease will take time as the gas that goes down takes time to get to your gas station. It's a one way street.

DaveO Loc: Northeast CT

Poohpz wrote:

I am hoping the increase goes to help the refineries get back up and running again. If that's the case and my husband keeps saying it is, then I don't mind.

Yes, the oil companies have been posting huge profit losses for many years now.

idaholover Loc: Nampa ID

Dannj wrote:

I'm in the Northeast US and see an increase of 30 to 40 cents a gallon in the last 3 days. I know that Harvey damaged some of the refineries and expected to see a rise in prices but not so soon.
I don't know how the pricing structure works but I would think that the gas I'm buying now has already been bought and paid for by the dealer I'm buying from and they're jacking up the prices prematurely on the gas that's already in the pipeline.

Anyone know how this works?

In supply chain economics one must factor in replacement cost. At least that is an issue I have run into during thiry some years of repping manufacturers.

idaholover Loc: Nampa ID

DaveO wrote:

Yes, the oil companies have been posting huge profit losses for many years now.

Here is a table of margins for California I found...
http://www.energy.ca.gov/almanac/transportation_data/gasoline/margins/#terms

DaveO Loc: Northeast CT

idaholover wrote:

Here is a table of margins for California I found...
http://www.energy.ca.gov/almanac/transportation_data/gasoline/margins/#terms

So what is your point? Did you not catch the sarcasm...the rolling eyes? Is this table supposed to represent profits? Are they making huge profits or losing money? Besides the 50 billion profits last quarter...

idaholover Loc: Nampa ID

DaveO wrote:

So what is your point? Did you not catch the sarcasm...the rolling eyes? Is this table supposed to represent profits? Are they making huge profits or losing money? Besides the 50 billion profits last quarter...

Don't know, my eye's are still rolling from the 20% tax/gallon. Have a nice day Dave, go play with dirt.

DaveO Loc: Northeast CT

idaholover wrote:

Don't know, my eye's are still rolling from the 20% tax/gallon. Have a nice day Dave, go play with dirt.

Don't stop fast or Big Bear will run into you! LOL!

idaholover Loc: Nampa ID

DaveO wrote:

So what is your point? Did you not catch the sarcasm...the rolling eyes? Is this table supposed to represent profits? Are they making huge profits or losing money? Besides the 50 billion profits last quarter...

I wonder how many pension portfolios those profits fuel. No pun intended. Not to mention the jobs and products that elevate our quality of life.
http://www.ranken-energy.com/Products%20from%20Petroleum.htm